You make some excellent points. In truth I can't see an existing SMB suddenly switching en masse to outsourcing, though they may opt to try a few things.
What I'm seeing currently is smaller companies, and especially startups, initially using services such as Amazon's EC2 and S3, as well as Google Docs and similar tools for virtually all of their IT needs. They are also using a mix of machines; Windows, Mac, and Linux. As they grow they continue to use what they have become comfortable with. I have friends in Web 2.0 startups that don't own a single server.
As they grow the company then eventually flesh out an in-house IT support team and bring some things in as necessary, but nowhere near the old days of all IT in the building.
I am also not recommending an outsourced IT team. I am merely pointing out that by using outsourced services - cloud computing and the like - fewer IT staff are required to maintain the back office servers and technology. As for SLAs, I believe that these services are capable of providing the same level of service as my staff was back in the day. And they are beginning to sell actual SLAs for those companies that require them.
Companies will continue to need in-house IT staff, both for oversight and to ensure that the company isn't just receiving the minimum requirements. That staff will need to evaluate the outsourced services to determine if the company is getting the best value, and if not make changes.
I believe that costs will decrease, if only in the number of licenses of Microsoft Office you buy, though as the saying goes, your mileage may vary. There is simply the potential to use these available tools if you decide that they will do a better job for you. And there may be a breakeven point in company size where these economies of scale no longer apply; where it is cheaper or more efficient for the company to do it itself.
I believe that there are options here for some companies to cut their costs balanced against the potential risks of doing so. That won't be true for every company.
Mark,
You make some excellent points. In truth I can't see an existing SMB suddenly switching en masse to outsourcing, though they may opt to try a few things.
What I'm seeing currently is smaller companies, and especially startups, initially using services such as Amazon's EC2 and S3, as well as Google Docs and similar tools for virtually all of their IT needs. They are also using a mix of machines; Windows, Mac, and Linux. As they grow they continue to use what they have become comfortable with. I have friends in Web 2.0 startups that don't own a single server.
As they grow the company then eventually flesh out an in-house IT support team and bring some things in as necessary, but nowhere near the old days of all IT in the building.
I am also not recommending an outsourced IT team. I am merely pointing out that by using outsourced services - cloud computing and the like - fewer IT staff are required to maintain the back office servers and technology. As for SLAs, I believe that these services are capable of providing the same level of service as my staff was back in the day. And they are beginning to sell actual SLAs for those companies that require them.
Companies will continue to need in-house IT staff, both for oversight and to ensure that the company isn't just receiving the minimum requirements. That staff will need to evaluate the outsourced services to determine if the company is getting the best value, and if not make changes.
I believe that costs will decrease, if only in the number of licenses of Microsoft Office you buy, though as the saying goes, your mileage may vary. There is simply the potential to use these available tools if you decide that they will do a better job for you. And there may be a breakeven point in company size where these economies of scale no longer apply; where it is cheaper or more efficient for the company to do it itself.
I believe that there are options here for some companies to cut their costs balanced against the potential risks of doing so. That won't be true for every company.
Thanks for your comments!
- Larry